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    Yng's Avatar
    Yng Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Jun 26, 2009, 07:19 AM
    Lessen the gap
    How to lessen the gap between profit macimization and shareholder wealth maximization conflict?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Jun 26, 2009, 10:11 AM
    Well, for starters, whenever you bump into somebody who's in the "profit max" camp, just loan 'em your Biz Finance 101 book, and we'll reduce the gap one misguided soul at a time. (Sorry, couldn't resist editorializing a bit :) )

    OK, seriously, first tell what you think are the primary arguments for each side, and we'll go from there... and here's a bit of a hint: which side considers the absolute size of the profits, and which one takes into account the return-on-assets efficiency angle?
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